Fiasco, Inc. (FI). Fl sponsors a top-heavy qualified Rachel has attained 2 years

Question

Fiasco, Inc. (FI). Fl sponsors a top-heavy qualified Rachel has attained 2 years of service with her employer, profit sharing plan and Rachel's account balance within the plan is $200,000. If the plan follows the least generous graduated vesting schedule permitted under PPA 2006, and considering Rachel has never taken a plan loan before, what is the maximum loan Rachel can take, plan permitting? O$0. Plan loans are not permissible from a top-heavy profit sharing plan $20,000 $40,000. $50,000. QUESTION 70 Social Security cost of living adjustments affect which of the following: O The monthly retirement benefit checks O The top and bottom bend points. O Medicare B premiums for single filers. None of the above. QUESTION 71 Colin took a $10,000 distribution from his IRA and rolled it over within 60 days to IRA 2 on May 2, Year 1. Can Colin indirectly rollover the balance in IRA 2 to IRA 3 Yes, at any time as long as he deposits the funds into IRA 3 within 60 days from the distribution OYes, if it is in the next calendar year OYes, after 12 months from the contribution to IRA 2 O No. QUESTION 72 Glen is 85 years old and is covered by Medicare parts A and B. While walking down the wooden stairs at his home last week, Glen's stylish Italian loafer slipped out from under him and he fell and broke his hip is three places. All of the following medical expenses will be covered under Part A of Medicare EXCEPT: Follow up visits to his primary care physician after Glen's recovery OHospital room and meals for 5 days spent in the hospital. OMedical and surgical expenses to treat his broken hip. Rehabilitation services in a skilled nursing care facility for 10 days.

Explanation / Answer

Question 69.

Option b)$20,000

Explanation:In this scenario Rachel has completed 2 years of her service, so as per the graded vesting schedule of PPA 2006 rules she can vest 20%of the amount i.e.$40,000. But the maximum permissible limit is lesser of $50,000 or 50% of the vested amount, reduced by prior loans. Hence the permissible amount is lower of $50,000 or $20,000(50% of $40,000). So, the answer is $20,000.

Question 70

Option d)None of the above.

Explanation:Social security cost of living is just to maintain our standard of living in future years, Not only retired person is entitled to social security benefit, but also a working age person who cannot work anymore because of disability, spouse and children of deceased are also eligible. Hence the option d is suitable for the statement.

Question 71

Option c) Yes, after 12 months from the contribution to IRA 2.

Explanation: According to IRS, from he beginning of 2015 rollover from one IRA to another is allowed but limited to one rollover in a period of 12 months. Hence, in this case for rollover from IRA 2 to IRA 3 he needs to wait for a period of 12 months from the date of his contribution to IRA 2.

Question 72.

Option a) Follow up visits to his primary care after Glen's recovery.

Explanation:

Part A of medicare covers Hospital care, skilled nursing facility care,short term nursing home care, hospice and home health care services. Hence, follow is not covered by PART A of Medicare .

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